How to Cancel a Tesco Credit Card

Posted June 12, 2018byLydia

Tesco is one of the major supermarket chains in the UK. It also offers telecoms and financial services with Tesco Mobile and Tesco Bank. Its Clubcard loyalty scheme is very popular for regular Tesco customers and those who have Tesco Credit Cards. However, you might find that you no longer want to bank with Tesco. Whether you are transferring to another bank or opening a different account with Tesco, you may need to cancel your Tesco Credit Card. Unfortunately, cancelling a credit card is never as straightforward as you would hope for. There are several factors to consider when you decide to close a credit account. Here are the important questions you should ask.

Should I Keep My Tesco Credit Card If I Don’t Use It?

If you have already paid off your Tesco Credit Card, you might cancel any Direct Debits and decide not to use this card anymore. You may have another credit card with a different provider which you prefer to use instead. Maybe you no longer want the temptation of spending this credit to avoid getting back into debt. Whatever your reason, cancelling an unused card has its benefits. It decreases fraud risk and allows you to access “new customer” deals. However, you might want to keep the card in order to keep any bonus rewards that come with it. Or you can lock it away for emergencies so you have it to fall back on. Some cards do require you to make active payments, though.

Will Cancelling My Tesco Card Affect My Credit Score?

If your Tesco Credit Card is your longest-held card, it might be worth hanging on to it. Credit lenders like to see a long stable history of activity and repayments to prove that you are financially responsible. If you cancel it, this could have a negative impact on your credit score. On the other hand, open credit cards with unused credit might also turn lenders off. Your credit utilization should be about 25%, and if you aren’t using the card then it will be 0%. Or if you have another credit card with a lower limit, your overall credit utilization could then increase above 25%. If your card has annual fees or the interest rate increases, it will be worth cancelling the account to save that money.

What Happens to My Clubcard Points If I Cancel My Tesco Credit Card?

One of the major draws of a Tesco Credit Card is that it can function as a Clubcard while earning extra points for transactions, in addition to the standard Clubcard points. With a regular Clubcard, you collect 1 point for every £1 you spend instore and online, including F&F clothing, plus 1 point for every £2 on Tesco Fuel. Tesco Credit Cards collect 1 point for every £8 you spend anywhere and double points in Tesco stores. You might be worrying about what will happen to all the points you have collected. If you have another linked Clubcard, you can demerge them to keep that separate account and transfer the points. Contact Tesco Bank or Tesco Clubcard to discuss conditions.

How Do I Cancel My Tesco Credit Card?

If you have made the decision to cancel your Tesco Credit Card, make sure that you do it properly. Cutting up your card so you cannot use it does not mean you have closed the account. You will need to contact Tesco Bank to let them know you want to cancel the credit card. Call the helpline and press 2 for general enquiries. Once you provide your card number and security information, you can press 0 to speak to an advisor about cancellation. Alternatively, you can write a letter to Tesco Bank, PO Box 27028, Glasgow, G2 9FT stating your wish to cancel your Tesco credit card. This must include your name, postcode, and signature. Enclose the cut-up card with the letter if you want to.

You should pay off the credit card before requesting to cancel. Even if you have done so, there may be a small bill the following month for “trailing” interest. If you still have outstanding repayments to make, Tesco Bank could stop all other transactions but keep the Credit Card account open until you have cleared the balance. If you would prefer, you might be able to get a balance transfer credit card with a different provider and pay off any remaining debt that way instead. Remember to keep checking your credit report and bills for the next few months after cancelling. You may decide to adjust your credit limit instead of cancelling, or just keep it if Tesco Bank offers you a new incentive.

What If Tesco Has Cancelled My Credit Card?

On a few separate occasions over the last several years, Tesco Bank has reported data breaches from other online retailers which affect Tesco Current Accounts or Credit Cards. In these instances, Tesco contacts the cardholder to inform them that they are cancelling the card as a measure against fraud. If your card is compromised, Tesco will contact you to let you know what is happening. You will not be able to use your card again once they cancel it. This means that you may have to find another way to make payments until you receive a new card in 5-7 days. You do not have to do anything unless Tesco contacts you first. They will not close your account, only replace your card.

Can I Get Another Tesco Credit Card?

If you have cancelled your Tesco Credit Card, you might not be able to sign up for the same card again so soon. Check the waiting period with Tesco Bank to find out how many months it takes before you will count as a “new customer” again. You should be able to apply for different Tesco credit cards. Even if you still have an open Credit Card, you are allowed to have more than one with Tesco Bank. However, you can only open one Premium Credit Card account, and you cannot transfer balances between Tesco Credit accounts. Tesco Bank is a competitive lender with plenty of options for long periods of interest-free borrowing. So, if you decided to cancel your Tesco Credit Card then sign up for another one later, it should be fine. Just choose the best Credit Card to suit your needs.